AEG up for sale

News out of L.A. yesterday that the Anschutz Company plans to sell off AEG, which currently owns the Galaxy and has a stake in the Dynamo as well.

AEG's vast holdings include the Home Depot Center & Staples Center here in L.A., the O2 in London, countless theaters and music venues, the (Stanley Cup Champion) L.A. Kings, a stake in the L.A. Lakers, a live music business second in size only to Live Nation...the list goes on and on. Prior to yesterday, AEG has been showing up in the news for their ongoing efforts to build Farmers Field adjacent to Staples and bring the NFL back to Los Angeles.

Pretty seismic changes are clearly ahead here in L.A., but for our purposes, I'll try to keep this focused on soccer and MLS. The Galaxy are certainly frequently vilified for their high-spending, superstar-focused mentality, but their MLS Cup win last year has to somewhat offset the criticism. And those of you better versed in MLS history can speak to this better than I can, but it's notable that AEG has had stakes in 6 different MLS teams over the years The company's investment in the league and in the sport in general has been crucial in solidifying the league's status.

It's conceivable that Anschutz will find a single buyer for the entire AEG empire, but it's also possible it could be broken up and sold. Or sold, then broken up and re-sold. So the future is definitely murky for each entity involved. Which starts to beg some larger sports business questions...is it better to be part of a larger spots and entertainment organziation? Or to have an owner with more limited holdings? AEG's done a decent enough job, considering their two wholly-owend L.A. teams are both reigning champions, but can we trust a new owner to do the same? Will the Galaxy become an after-thought?

Rumors are already swirling over potential buyers, but at this point they seem to be just that, rumors. AEG's management reportedly has contracts that require them to be kept on by new owners to maintain some continuity, but they also appartently have buy-out clauses.

Interesting times ahead.

 

Interesting indeed. Here in Louisville, we're trying to figure out what impact, if any, this has on our brand new arena, the KFC Yum! Center. AEG just took over management of the building a couple of months ago from the Kentucky State Fair Board. Now what? Probably nothing in the short term, but down the road?